Indonesia's President Prabowo nominates Destry Damayanti as central bank governor

Published Aug 11, 05:03 AM UTC

Indonesia's President Prabowo Subianto has nominated Destry Damayanti, the long-time senior deputy governor of Bank Indonesia (BI), as the next central bank governor. The nomination, submitted to the House of Representatives, follows the unexpected resignation of Perry Warjiyo last month for personal reasons, though reports suggest a disagreement with the finance minister over funding Prabowo's expansive fiscal agenda. Destry, a seasoned economist and former chief economist at Bank Mandiri, would become the first woman to hold the post permanently if approved by lawmakers, which is considered a formality given Prabowo's majority. The announcement gave a small boost to the rupiah, which gained 0.79% to close at 17,755 per U.S. dollar. The appointment comes amid fragile investor confidence due to Prabowo's high-spending policies, including a free meal program, which have widened the fiscal deficit and led to ratings outlook downgrades by Moody's and Fitch. Markets will watch closely whether Destry maintains BI's independence or yields to pressure to support government spending.